New Jersey S 1450: Requires Director of Division of Taxation to include sales of properties in age-restricted developments by third parties in table of equalized valuations.

Bill Text

S1450 

SENATE, No. 1450 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Senator JOSEPH P. CRYAN

District 20 (Union)

Senator VINCENT J. POLISTINA

District 2 (Atlantic)

SYNOPSIS

���� Improves management and administration of New Jersey 
Better Education Savings Trust program; establishes grants and additional tax 
incentives for New Jersey Better Education Savings and Trust account 
contributions; creates New Jersey Better Education Savings and Trust Advisory 
Council.

CURRENT VERSION OF TEXT 

���� Introduced Pending Technical Review by Legislative 
Counsel.

�� 

An Act concerning improvements to the New Jersey Better 
Education Savings Trust program, amending various parts of statutory law, and 
supplementing Titles 18A and 54A of the New Jersey Statutes and Title 54 of the 
Revised Statutes.

���� Be It 
Enacted by the Senate and General Assembly of 
the State of New Jersey:

���� 1.��� N.J.S.18A:71B-40 is 
amended to read as follows:

���� 18A:71B-40.� a.� The authority 
shall select an investment manager or managers to invest the funds of the trust 
or the funds in accounts.� In making this selection, any investment manager 
shall be subject to the "prudent person" standard of care applicable 
to the Division of Investment in the Department of the Treasury pursuant to 
subsection b. of section 11 of P.L.1950, c.270 (C.52:18A-89), and the authority 
shall [consider 
the impact of] 
select a manager or managers that charge the lowest possible fees and 
costs imposed by the manager or managers on yield to contributors.

���� b.��� The authority may select 
more than one investment manager and investment instrument for the program if 
it is in the best interest of contributors and will not interfere with the 
administration of the program.

���� c.���� The authority may 
provide a contributor with a choice of investment managers or investment 
instruments or both for the program if both of the following conditions exist:

���� (1)�� the federal Internal 
Revenue Service has provided guidance that providing a contributor with a 
choice of investment managers or instruments under a State tuition program will 
not cause the program to fail to qualify for favorable tax treatment under section 
529 of the federal Internal Revenue Code of 1986, 26 U.S.C.s.529; and

���� (2)�� the authority concludes 
that a choice of investment managers or of investment instruments is in the 
best interest of contributors and will not interfere with the administration of 
the program.

���� d.��� If the authority 
terminates the designation of an investment manager to hold accounts, and 
accounts must be moved from that investment manager to another investment 
manager, the authority shall select the investment manager and type of 
investment instrument to which the balance of the account is moved, unless the 
federal Internal Revenue Service provides guidance that allowing the 
contributor to select among several investment managers or investment 
instruments that have been selected by the authority would not cause a program 
to cease to be a qualified State tuition program for the purposes of section 
529 of the federal Internal Revenue Code, 26 U.S.C.s.529.

���� e.���� If the selection 
process provided for in this section results in an investment manager other 
than the Division of Investment, the authority shall provide for the orderly 
transfer of accounts and shall ensure that all the rights of the contributors 
and designated beneficiaries participating in the program as of the effective 
date of P.L.2001, c.262 (C.18A:71B-64 et al.), are protected.

(cf: P.L.2001, c.262, s.18)

���� 2.��� N.J.S.18A:71B-43 is 
amended to read as follows:

���� 18A:71B-43.� Annually, the 
authority shall determine a dollar amount of an account, which shall not be 
less than [$25,000] $50,000, 
which shall not be considered in evaluating the financial needs of a student 
enrolled in an institution of higher education located in the State of New 
Jersey, or be deemed a financial resource or a form of financial aid or 
assistance to a student, for purposes of determining the eligibility of a 
student for any scholarship, grant, or monetary assistance awarded by the 
State; nor shall the amount of any account as determined by the authority 
provided for a designated beneficiary under this article reduce the amount of 
any scholarship grant or monetary assistance which the student is entitled to 
be awarded by the State.

(cf: N.J.S.18A:71B-43)

���� 3.��� Section 3 of P.L.2021, 
c.128 (C.54A:3-12) is amended to read as follows:

���� 3.��� A taxpayer with gross 
income of [$200,000] $300,000 
or less shall be allowed a deduction, not to exceed [$10,000] $15,000, from the 
taxpayer's gross income for the taxable year in the amount of the taxpayer's 
contribution for the taxable year to an account established pursuant to the 
"New Jersey Better Educational Savings Trust Program